"Smells OK, but are sure what's in it?" Image: playerx/flicker/CC BY

According to the information site surveysez.com, the average American spends about $1,490 a year feeding one dog. As a nation, says Wiki-Answers, Americans spent more than $16 billion on dog food in 2007. However, by making your own dog food you can save money and be sure your pet is getting the nutrition he or she needs.

Nutritious daily food

This dog food recipe comes from the aptly named website Homemade Dog Food. The recipe includes supplements that, according to the site, would require another 10 to 20 natural ingredients, making it too expensive and cumbersome to make without. Excluding the supplement, the site adds, could lead to a variety of nutritional deficiency diseases.

There are many companies that make these supplements. We have included links to the ones recommended by the site. An Internet search will quickly locate other brands available, however. We encourage shopping around.

Ingredients:

10 lbs. of raw ground beef
18 eggs with shells — The shells provide needed calcium
5 cups uncooked white rice
1 tube of LickOchops omega fatty acid supplement
Dinovite Liquid daily supplement — This comes in packets sized for small, medium, large and giant dogs.

Put the ground beef in a large dish with the cooked and cooled rice. Add the eggs, after pureeing them, shells and all, in a blender. Mix thoroughly with gloved hands. Form the entire batch into six or seven loaves. Bake about one hour at 350 degrees. This recipe yields about 48 cups of nutritious dog food. Put it in several freezer containers, keeping one thawed for your dog’s daily meals.

When you do feed your pet, though, be sure to add about a teaspoon of the omega fatty acid supplement and a packet of the liquid daily supplement when the food is cold, before serving.

See the video posted below for step-by-step instructions.

Homemade doggie treats

The following recipe for doggie “bacon bites” comes from Kerry Heffernan, executive chef at New York’s South Gate restaurant and author of “The Culinary Canine.” Hefferman claims that his Labradoodle Benny gets these as a special treats sometimes, “just for being adorable!”

Ingredients:

1/4 pound bacon
2 cups whole-wheat flour
2 eggs
1 cup water

Cut the bacon into small, thin strips. Fry it up crispy, and put the pieces in a small bowl, setting the fat aside. Mix the flour, eggs and water with the bacon. Roll the pliable mixture out about 1/4 inch thick. Use a cookie cutter to make treat-sized pieces and place them on a greased cookie sheet, about a half inch apart. Bake for 20 to 25 minutes, or until golden brown. Brush them with the re-heated bacon grease and refrigerate.

Look around

There are many sites devoted to making dog food. This article presents only two recipes of a multitude available.

‘Make your own dog food’

Sources

CBS
Homemade Dog Food
Surveysez.com

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Facebook is going public this week. But will its performance justify the fever to get a piece? Image: codemastersnake/Flickr/CC BY

Facebook is set to become a publicly traded company Friday. Even low and middle-earning consumers who have never risked playing the stock market before are sorely tempted to take stock in one of the most phenomenally popular web ventures of all time. It seems like a no-brainer, right? But hold on. Some experts are not so convinced.

Facebook IPO fever

It is the most-anticipated IPO in ages and could raise Facebook’s overall value to more than $100 billion. In response, the Goliath of social networking sites said Tuesday that it will be upping the price of its initial offerings to a range of $34 to $38 a share. Previously, that price has been announced as between $28 and $35 per share.

Out of the loop

But will the little guy and the first-time investor even have a chance to participate? According to Rick Aristotle Munarriz of the The Motley Fool, the introductory price will go to institutional investors and uber-wealthy clients.

He wrote:

“Underwriters save their allotments of freshly minted shares for prized clients, leaving most ordinary individual investors to bid on new offerings after they hit the open market and get bid up to higher prices.”

But hold on…

The trick is to get the stock before that initial price pop. There may be a chance.

Facebook announced Wednesday that it will accommodate the tremendous demand by upping the shares of its initial offering by about 25 percent. That’s about 84  million shares more, valued at up to $3.2 billion.

The company, however, says it will receive no profit from the additional sales. The added shares all come from Facebook insiders and early investors.

Facebook founder Mark Zuckerberg himself will not be selling any more of his stock, however. After the company goes public, he will still have the controlling vote, although his overall share will be reduced from 57.3 percent to 55.8 percent.

Other hot IPOs

Even if you can get your hands on some of those initial shares, it may be worth little more than bragging rights. Rick Aristotle Munarriz reminded readers Wednesday that Groupon, Zynga and Pandora were all hot IPOs when initially offered. All led the market in their web-niches, and they remain more popular than ever today.

But Groupon went public in November for $20 a share. Last week, its value had shrunk to below $10 a share. Zynga, the game developer that rides on Facebook’s coattails with Mafia Wars and FarmVille, went public in December for $10 a share. This week, those shares were trading at $8. The successful music discovery site Pandora started selling stock at $16 a share last June. Wednesday, they was going for between $10 and $11 each.

‘Stock’holm syndrome

Another analyst, Robert Pagliarini of the Chicago Tribune, took the argument a step further, suggesting that those who are fired-up to buy a piece of Facebook may have something akin to a mental disorder.

Stockholm syndrome is a paradoxical psychological pathology in which hostages begin to empathize and feel beholden to their captors. In this case, Pagliarini posits, people will buy Facebook stock because they associate it with their friends and sharing and socializing, not because it is particularly a sound business move.

Sources

Daily Finance
Chicago Tribune
Daily Finance

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Everyone must learn how important dealing with workplace stress truly is. (Photo Credit: CC BY-ND/Rachel Carter/Flickr)

Stress in the workplace is a fact of life for many people. How can you get a handle on it and maintain your health? Here are some ideas for dealing with workplace stress, before it destroys you.

Recognizing burnout

Workplace stress comes in many forms. What’s important initially is that you recognize burnout for what it is. You may be feeling any or all of the following symptoms:

• Fatigue
• Depression
• Frustration
• Loss of motivation
• Resentfulness
• Helplessness

When this happens, take action to right your ship. You may not be able to quit your job, even if it’s a dead-end – blame the economy and your obligations – but you can take some actions to being healing.

Take care of yourself physically

Get a good night’s rest each night. Exercise at least 30 minutes at a time, several times per week. Perhaps most importantly, eat a balanced diet, free of excess salt, sugar and high fructose corn syrup.

Have a social life

You must have some semblance of a social life outside work. Family and friends are the glue that can hold your cracked, balsa-wood life together when you need cohesion.

Pursue hobbies

Whatever you enjoy doing, make a point of pursuing those interests. As Langston Hughes suggests, a dream deferred may explode – what’s left after that? Focus on healthy activities that motivate you and make you happy. Grab hold and never let go.

Take vacation

Don’t be a fool or a coward. If you have vacation time to use, use it all, unless it’s paid back to you at the end of the year. Even then, the time away may be of more value to your psyche. If your work penalizes you for using time off that you have officially been allotted, you need to find a place to work that isn’t evil.

Take your breaks

Use your legally mandated 15-minute breaks. Meditate, go for a walk, read, hypnotize yourself, write, people-watch outside, do whatever gets your mind off work.

Talk to your supervisor

If your job is causing you so much stress that it is compromising your health, speak with your immediate supervisor. Ask for more responsibilities if your job is so dull it’s driving you crazy. If you’re overworked, ask if there’s a way to do less, yet emphasize how the extra attention you can give everything else will benefit the company. Do this in the most positive way possible.

Learn to say “no”

If you’re guilty of overcommitment, it pays to learn how to say “no.” Taking on too many things is a trait of the super-responsible, and it can cause resentment between yourself and your peers. Respect the ability of others to handle certain tasks without your passive-aggressive micromanagement. Learn to delegate, within reason.

Don’t sweat the small stuff

Sometimes, a personal attitude adjustment is necessary. Whether you achieve this through counseling, positive self-talk, hypnosis or a similar meditative state, learning not to worry so much is a key life skill that you must perfect.

Take advantage of EAP

If your employer offers an employee assistance program (EAP), seek an appointment. Such workplace counselors have dealt with workplace burnout often and may have strategies you can employ for self-help immediately.

Don’t do anything rash

As mentioned before, don’t make a rash decision to quit your job or lash out at yourself or others until you’ve carefully considered your options. If changing jobs is best, your health and the health of your family must come first. As for lashing out, use a safe punching bag at your local gym, contact a therapist, find a counselor or call a suicide prevention hotline. Never hurt yourself or others. There’s always a better, more socially acceptable way to find peace.

When all else fails, change jobs

This should be a last resort, as throwing yourself to the wolves of the current job market can be treacherous. Call in all your career contacts and favors. Leverage your most marketable skills. Work relentlessly at finding work.

De-stress at work with hypnosis

Sources

HelpGuide.org

Mayo Clinic

Money Crashers

You can learn more about this topic by visiting the source of this content, Personal Money Network, today.

Consumer spending is up, Labor Dept. says. Image; 401K/Flickr/CC BY-sa

Consumer prices are holding fairly steady, the U.S. Labor Department said Tuesday, with spending increases offset by lowering gasoline and natural gas prices.

Consumer spending up

April’s uptick in consumer spending on larger-ticket items is a sign of an improved financial situation for many Americans. Sales of cars, electronics and furniture all increased with the changing of the season. Spending was also up in the nation’s restaurants and bars.

Economist Paul Ashowrth of Capital Economics said:

“Consumer spending looks to have started the second quarter on a solid footing.”

Lower gas prices

In spite of these increases, the nation’s retail sales increased by only 1 percent overall. Part of that slowness was because growth was offset by lowering gas prices. The cost of gas has dropped about 17 cents in the past month, to a national average of $3.73 per gallon, according to AAA.

Leslie Levesque, a senior economist at IHS Global Insight, said:

“We had expected gas prices to be elevated until Memorial Day. The fact that they have already retreated so much is a very good sign. It alleviates the strain on consumers’ pockets.”

Mild winter

This year’s modest winter also played a role in the slow-climbing spending numbers. An early uptick of gardening and building supplies fell sharply in April.

‘Core’ gains

By eliminating car and gas sales and other items affected by the season, economists determined that April’s core gain to retail sales was a modest but encouraging 0.2 percent.

Inflation slowing

Meanwhile, inflation has slowed. The cost of goods climbed by 2.3 percent, its smallest rise in more than a year.

All of this portends increased consumer confidence, as evidenced by a separate report Friday from The University of Michigan. Its Consumer Sentiment report marked its highest level in more than four years.

Election fodder

These numbers, coming six months before the presidential election, will no doubt look good to the Obama re-election campaign, which many analysts believe hinges almost entirely on the health of the economy. His opponent, Mitt Romney, blames Obama for the weakened economy and is fond of reminding voters that unemployment still hovers around 8 percent.

However, in spite of recent slowing, 1 million jobs have been added to the economy since Dec. 1.

Unemployment still too high

Some economists remain concerned that, with income growth still trailing inflation, the economy could see more slowing if unemployment rates don’t soon fall. While the average American wages have increased by 1.3 percent in the last year, that is still 0.5 percent slower than last year when adjusted for inflation.

Sources

Daily Finance
Kansas City.com
New York Times

You can learn more about this topic by visiting the source of this content, Personal Money Network, today.

This kind of pinecone is unsuitable for a kitchen table centerpiece. (Photo Credit: CC BY-SA/Anna Walton/Geograph)

Have you ever wanted to fulfill your interior decorating fantasies but kept your desires in check because you assumed it would be too expensive? Pish posh, you worry wart. Here are some cheap, DIY home decorating ideas that you can pull off for less than $5 each.

Floating invisible bookshelf

If you have some old, thick hardcover books you don’t read anymore sitting around the house, put them to use as as a wall-mounted bookshelf. With some metal L-brackets and some wall screws, you can make an invisible bookshelf for more books, vases, photos or anything else.

Cork wreath

You’re a wino, right? Save those corks then, captain! With a foam wreath and perhaps some wire from a craft store, you can make an entertaining wall wreath that speaks to your days and nights of inebriated debauchery. It spells home.

Garland from the memories you stuff away

Many people save holiday cards and favorite family photos, if for no other reason than to pretend that they have healthy families. Dysfunction aside, you can take those snapshots in time and connect them together with ribbon, clothespins, string or a similar substance. Even if the photos are the stock photos from store-bought picture frames, your wall will appear more festive whether it likes it or not.

Plates and discs

Record albums, commemorative plates and CDs – even all those America Online installation CDs – are great for a colorful wall display. Adhesive disc plate hangers can help. String and thumbtacks can also work when you’re dealing with CDs or those micro CDs and CD-ROMs that most people no longer use.

Pinecone and dried grass centerpiece

Pine trees are tailor-made to cater to your DIY cheap home decorating ideas. Collect comely fallen pinecones and arrange them in a bowl. Put the bowl in the middle of your dining room table and you have a fine natural centerpiece. Alternatively, get a vase and fill it with varieties of dried grass. Tie up the bundles of grass with ribbon, and you’ve got instant pretty.

Shell bookends

If you live near the ocean, are a skin diver or have a cheap beachfront gift shop connection for conch shells, take advantage. Conch, tun and whelk shells work well as bookends, replacing the skulls of your enemies that you’d been using up to this point. It’s about time, because the police were about to come knocking.

Shells for soap

Make a seashell soap dish with something the size of a clam shell. Even a small shell will work, provided you use tiny bar soaps.

Driftwood on the wall

Driftwood and birch branches can work well as wall decorations. Drywall screws, hooks and hanging wire are all you need to strap these all-natural elements to your walls.

The letter of the wall art

Make art from a series of photos of objects that look like letters. Spell out messages of love and hope for your wall, because a happy wall won’t abandon you during a rainstorm. Services like Shutterfly and Snapfish are great for printing such photos inexpensively.

Alternatives to this could be framing covers from your favorite old books, or even cutting out artistic fonts from magazines and creating messages any kidnapper (or law-abiding interior decorator) can appreciate.

Fortune cookie fortunes on the wall

Stop throwing away your fortune! Place numerous, creatively arranged fortune cookie slips in a frame, or just one slip, and hang in up. The end result can be whimsically stylish.

Discount Trendsetter DIY home decoration ideas

Sources

Better Homes and Gardens

Good Housekeeping

WiseBread

You can learn more about this topic by visiting the source of this content, Personal Money Network, today.

Smart power meters and smart utilities may be efficient, but some consumers aren't thrilled with them. Photo Credit: Dwight Burdette/Wikimedia Commons/CC-BY-SA

One of the latest innovations in energy utilities is that of “smart grids,” or power grids designed to use less electricity where possible. Though efficiency is the goal, a lot of consumers aren’t happy about them because smart grids are running up the power bills for many.

Peak at the power bill

A number of energy utility companies, municipal and private, have been investing in and switching over to “smart” power grid technology in the past few years.

According to the New York Times, the meters are used primarily to gather more data than the old-style of power meters. The meters send data remotely to the utility company, meaning meter readers don’t have to be sent out, saving the utility and presumably customers money on their monthly power bill.

However, one of the main functions is monitoring electricity usage during peak hours, which power companies then charge more for. A lot of consumers, according to Daily Finance, aren’t too happy about it.

Higher bills and no opting out

The idea, according to the New York Times, is to “ding” people for higher energy use during peak hours to encourage them to use less in those hours. If people were to not run air conditioners as much during the day, less electricity has to be generated. That way, less coal is burnt, less uranium used to create nuclear power and so forth, reducing the cost of generating said power, transmitting said power and saving the earth.

Utility companies also can align prices with the price of available electricity on the open market, potentially resulting in a savings. However, a number of people who receive electricity through smart meters report being charged for more electricity usage than they have ever used.

However, according to Daily Finance, utility companies utilizing smart meters, such as Pacific Electric and Gas in California, are charging customers for installation of smart meters. Some, including PG&E, are charging customers for opting not to receive the meters. PG&E charges $75 to customers to opt out of the meters, along with $10 per month to not have one.

Utility companies in Vermont, where $69 million of the $29 billion stimulus funds devoted to smart energy went, also don’t allow customers to opt out of smart meters, according to CBS.

Consumers unhappy

Some people aren’t happy with the meters. A bill is going before the governor of Vermont to mandate utility companies to allow opting out for free and a similar proposal is being considered in Maine, according to CBS.

Smart energy readers have been found overcharging. According to Reuters, 1,600 PG&E smart meters were found over-charging customers for electricity in 2011. The company had been sued in 2009 by residents of the city of Bakersfield, who said smart meters were overcharging. According to Houston, Texas, CBS affiliate KHOU, 5,200 smart meters were discovered to be overcharging customers by seven kilowatt-hours per month in 2010.

Sources

New York Times

Daily Finance

CBS

Reuters: http://www.reuters.com/article/2011/05/02/idUS406816379420110502

KHOU: http://www.khou.com/home/CenterPoint-5200-smart-meters-overcharged-Houston-area-customers-89018122.html

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Long term care and retirement health insurance costs are going up faster than most people realize. Image: Flickr / 401K / CC-BY-SA

Not everyone has a chance to save for retirement, but it is something almost everyone should be doing. One very important thing to remember is that health care costs in retirement will likely keep going up.

Rising health care costs

The costs of health care, both out-of-pocket and subsidized, are expected to keep going up. The extent to which these costs will go up will depend on a variety of factors, but expectations are that they will continue to go up. This year alone, out-of-pocket medical expenses for retired couples will go up to around $10,750 per year. Couples retiring this year are expected to spend somewhere in the range of $240,000 per year on their out of pocket medical expenses during their full retirement. In the last year, these costs have been going up an average of 4 percent a year.

Actual retirement savings

On average, Americans who are thinking about retirement costs are only budgeting $5,621 per year of their retirement for health care costs. This is a number in line with cost of living increases but not medical cost inflation. This difference in costs is what is leading to a “retirement” for many people that still includes some kind of working. Unless you have an employer who will continue health coverage after retirement, you may find yourself paying much more for medical care than you may have in the past. Though Medicare may continue as it currently is, taking a bet on the future of Medicare may not be a safe option.

Long term care insurance

In addition to strictly medical coverage, long-term care coverage is also a factor in retirement savings. Long-term care is not strictly a medical cost, though medical costs are a part of long-term care. The average life expectancy of Americans is going up, and the reality is that many people will not be able to live entirely on their own as they age. Long-term care insurance stands in place to defray some of the expenses of long-term care. In all retirement savings calculations, you should consider carefully that you will need to pay medical costs and possibly long-term care costs. A general purpose savings or retirement account can be effective in paying these costs, but you need to consider those costs in deciding how much to save.

Sources

Dispatch.com
My Desert
CNBC

You can learn more about this topic by visiting the source of this content, Personal Money Network, today.

Shop around for ways to save money on prom dresses. (Photo Credit: CC BY-SA/Dawsonlemus/Wikipedia)

‘Tis the season. MSN Money notes that the average cost of a senior prom in the U.S. is $1,078. That’s more than many families can afford to spend, which means prom savings are necessary. Here are some tips for saving money on prom.

Cut prom costs – on her dress

• Retro chic is in. Try the thrift store or garage sales, and go for anything vintage.
• Shop on consignment. If the thrift store doesn’t work, try a consignment store. It costs a little bit more, but nowhere near what you’ll pay at a dress shop.
• Shop the clearance racks.
• Shop online at sites like PriceGrabber.com or Rent the Runway.
• Go for a short dress rather than a floor-length gown. It’s cheaper and easier to dance in. However, make sure to keep it classy. A strapless black dress can stand out in an ocean of teen bling.
• Borrow from a friend.

Cut prom costs – on his ensemble

• Don’t assume a tuxedo is the only way to fly.
• Look for group discounts by buying from the same place with your friends.
• Use tuxedo rental coupons from Retail Me Not and similar sites.
• Buy a tux and hand it down among brothers and friends.
• Go vintage at a thrift shop.
• Borrow dad’s wedding suit, if it looks good. Retro is in for guys, too, thanks to “Mad Men.”

Cut prom costs – on hair, makeup and more

• Use the services of a beauty school.
• Use salon vouchers from Groupon and Living Social.
• Do your own hair, makeup and nails, or have a relative help.
• Buy a little something and have the department store cosmetics counter employee give you a makeover.
• Wear sandals or heels you already own. People are looking at your hair, face and dress. The rest is of lesser importance.
• Borrow jewelry, purses, wraps, etc. Guys can do the same with pocket squares and cummerbunds.

Cut prom costs – on transportation and trimmings

• Split the limo fee among multiple couples.
• Rent a tricked out party school bus instead. It’s much cheaper.
• Borrow a car.
• Assemble your corsage or boutonniere from supermarket flowers. Or start early and grow them yourself.
• Have mom host an intimate dinner by candlelight. Save big over what a restaurant would charge.
• Eat together with the family. Dress up for prom and go afterward.
• Negotiate a group price at a restaurant.
• Skip the hotel room and booze.

Save money on prom – tips from EMiGallx0x0

Sources

Mom Maven

Money Crashers

MSN Money

You can learn more about this topic by visiting the source of this content, Personal Money Network, today.

America is drowning in debt. Image: pasa47/Flickr/CC BY

Debt is how our nation got into its current economic predicament. Once upon a time, credit was readily available and easy to get. Many of us became over-extended, never dreaming that the gravy train would slow down and make it hard to catch up again. But catch up we must, or sink deeper. Here are some not-so-wise strategies to avoid. Many who have tried them have ended up spending more in the long run.

Minimum Payments

If you are only making minimal payments on your lines of credit, you are increasing your debt. The interest will continue to rise until it sucks you under.

High interest debt consolidation

Debt consolidation only works if you can consolidate your loans into one loan that has a rate equal to or lower than the average of the debts you are consolidating. If it is higher, walk away. It may be easier to pay one bill each month, and it may look like a bargain compared to what you are paying now, but in the long term, it will cost you more.

Robbing your retirement

Borrowing from your 401(K) account is a bad idea. Always. There are three reasons for that:

1) It leaves you with less take-home pay until the loan is repaid.

2) Your plan may not allow you to contribute more to the fund until the loan is repaid.

3) If you lose or leave your job, you are required to pay back that loan immediately to avoid penalties; and this is right at a time when you may really need that nest-egg to tide you over until you find work again.

A 401(K) is for your retirement. Robbing from your future to feed your present can only leave you short later when it counts the most.

Borrowing from friends and/or family

Without family and friends, life is truly empty. Should you lose everything, hopefully at least they are still there for you. But if you’ve made a habit of borrowing money from them that you were unable to repay, you may be burning bridges that have far greater value to you than money.

Debt settlement

Debt settlement companies hold onto affordable monthly payments that you make to them instead of to your creditors. As that money builds, they try to negotiate with creditors to accept lesser amounts than what is owed.

The problem here is three-fold. First off, these companies don’t do anything you can’t do yourself. Generally, creditors are eager to cut a deal with you rather than fight you in court, so why pay a third party to do it for you?

Secondly, in order for that fund to grow, you have to stop paying your bills. Then come the debt collectors and the hits to your credit report. Then, what if your creditors don’t agree to the plan the debt settlement company has negotiated?

Thirdly, these companies are sometimes disreputable, preying on frightened, financially strapped people. In the end, these victims are left in a worse situation than when they began.

On the fence?

Finally, if on the fence about the best way to pay off your out-of-control debt, ask yourself this question, as posed by About.com:

“Is this just a quick, easy solution to tide me over or will this really, once and for all, get rid of the debt?”

Answering this question as honestly as you can will likely point you in the right direction. Or at least away from the wrong one.

Sources

About.com
Life Hacker
How Life Works

You can learn more about this topic by visiting the source of this content, Personal Money Network, today.

"The London Whale." JPMorgan's investments made of sand. Image: kgibson/Flickr/CC BY

In the wake of JPMorgan Chase’s admission last week of a $2 billion blunder, many analysts are saying Wall Street is taking huge risks again, gambling with stockholder money in the same way it did before the economy tanked. With so much at stake, Massachusetts Senate candidate Elizabeth Warren is calling for JPMorgan CEO Jamie Dimon’s head.

‘London Whale’

JPMorgan‘s losing trades were carried out by its chief investment office in London, which has since been dubbed the “London Whale.” The trades involved credit default swaps, essentially the same kinds of instruments that brought down AIG in 2008.

Who to be the watchdog?

Dimon has been one of the most vocal supporters of self-regulation for financial institutions. Massachusetts Senate hopeful Elizabeth Warren, who set up the new regulating Consumer Financial Protection Bureau, pointed out the irony of Dimon’s stand Monday on CBS’s “This Morning”:

“Jamie Dimon has been the one who has led the charge in order to say, ‘nope, no more regulation, fight back against regulation, call the regulation un-American, try to resist, try to put loopholes into regulation, hire an army of lobbyists.’ This has really got to stop.”

Call for Dimon’s head

Warren also called for Dimon’s resignation:

“I’d like to see some real accountability here. I’d like to see Jamie Dimon, for example, resign from his position as a Class A director of the New York Federal Reserve Bank.”

Hindsight is $2 billion

Dimon himself admitted Sunday, in an interview with David Gregory on NBC’s “Meet the Press,” that JPMorgan had taken too great a gamble:

“In hindsight, we took far too much risk. The strategy we had was barely vetted. It was barely monitored. It should never have happened.”

A history of risk

However, JPMorgan has made a habit of risky investments in recent memory. Janet Tavakoli, president of Tavakoli Structured Finance, said:

“For some time, JPMorgan has been taking huge positions in commodities, currencies and credit derivatives. It looks to me this was being run as a prop desk, not to hedge the firm’s overall risk.”

Tip of the iceberg?

Many are saying JPMorgan’s misstep can only be the tip of the iceberg, and that the financial services industry, already bailed out by tax-payers for its failed taste for risks, is up to its old games.

Mike Mayo, a bank analyst at Credit Agricole Securities, told CNN:

“If this type of problem can happen at JPMorgan Chase, which has better risk management, it can happen over time at others with weaker infrastructures, such as Citigroup and Bank of America.”

Mayo also warned that JPMorgan’s blunder is not an anomaly:

“We’ve seen it before and we’ll see it again.”

The end result of the banking industry’s short memory could be another hit to an already badly wounded economy. That is something none of us can afford.

Sources

Politico
CBS
CNN

You can learn more about this topic by visiting the source of this content, Personal Money Network, today.

Building a financial plan takes time, but it can be worth it. Image: Flickr / 401K / CC-BY-SA

A financial plan may not necessarily sound like fun, but it is an essential part of being financially secure. Though building your plan can be tedious, there are four things to keep in mind that can make the process easier.

Money is a means to an end

When chasing numbers, it can feel like money is an end, a goal in and of itself. Remember always that money is a means to an end, not the end itself. When you are moving numbers around in your budget, keep in mind that the money you are bringing in is a tool to reach your goals. Those goals are the top priority. Make financial decisions with your goals in mind, not the final number at the bottom of your balance sheet. If you treat money like a goal in and of itself, you could end up making decisions that do not serve your goals.

Early investment is the best investment

The younger you are when you start investing, the better. Compound interest is very powerful, and the earlier you invest, the more compound interest you can build. If you have any option, then you should invest as much as you can as early as you can, because you will develop more in compound interest. Investing young is not an easy thing to do, but even the smallest amounts will pay out in bigger dividends later in life.

Goals are necessary – maybe

Everyone is different and has different styles of money management, different styles of savings, different styles of personal management. Most people, however, do the best when they have a goal to work toward. Having a goal means you have something to focus on. When you focus on those goals, you are more likely to actually achieve those goals. You should at least try to set a few financial goals, to give the rest of your financial plan focus.

Do what works for you

Just because every piece of financial advice you have ever read says you “should” do one thing or another, doesn’t mean you should do it. Instead, you should know what works best for you and actually do it. Knowing yourself and knowing what works best for you will always be the best thing to do. You should only change what you are doing when you decide that your current activities are no longer working.

Sources

Certified Financial Planner Board of Standards
FinancialPlan.About.Com
Financial Highway

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Americorps volunteers are paid a stipend for their time. Image: Flickr / ginnerobot / CC-BY-SA

With a very tight job market, many college graduates are considering volunteering as an option for post-graduate employment. The financial side of volunteering can work out for more than just college graduates.

Volunteer programs in the USA

In the United States, there are several major volunteer programs. Americorps is a program that focuses on volunteerism in the United States and works with several communities and programs. Peace Corps sends volunteers out around the world, often to second and third world countries and communities. Teach for America is a program that trains outstanding college graduates to be teachers for two years.

The financial benefit of volunteering

All three of these major volunteer programs in the United States have a financial component of some kind. Peace Corps will pay you enough to live on in the community where you are working. Americorps will do the same, depending on the type of program you are part of. Teach for America will also pay you as a teacher. All three programs come with a completion-of-service benefit, and all three programs have some kind of benefit for your student loans. The details of each program are different, but all three will be financially beneficial in the end, if you work very carefully.

Budgeting to be a volunteer

Being a volunteer with any of these programs comes with one specific caveat: you are a volunteer. Often these programs pay you just barely above poverty wage, and the completion of service payout does not come until you actually complete your service. You can live on a volunteer stipend, but only if you budget carefully and plan to not be making a lot of cash. Some programs will allow you to work outside jobs, but many will not provide you much time to do so.

Considering adult volunteerism

Even if you are not directly out of college, you may have an opportunity to volunteer with Americorps or Peace Corps. Americorps and Peace Corps both allow volunteers of any age. Volunteering can be a great way to build your resume and connections for a few years, while doing good for the community. The Americorps program even has part-time volunteer program for individuals who want to keep their full-time jobs. Cut down your expenses as much as possible, and prepare to live on a shoestring for a while. Many volunteer programs will help you put your student loans in deferment for the time you are in the volunteer program.

Sources

Americorps.gov
Peace Corps
Teach for America

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Every business networking opportunity can be productive. (Photo Credit: CC BY-SA/Danielle Scott/Wikipedia)

Business networking is an essential skill, whether you’re looking to get your career off the ground or improve your prospects mid-career. Yet not everyone knows how to do it. Here are some suggestions for striking up and concluding networking conversations smoothly.

Getting started with networking

First, it’s time for introductions. This is your first opportunity to allow your skill in the art of conversation to shine. Most experts in business networking agree that the “keep it simple, stupid” formula is best at first. Share a little about who you are, your company and your job position. If you aren’t currently employed, approach an employer at a career fair and talk about your previous experience, education, interests, etc. Let people know that you think a great deal about your job, and attempt to engage them in conversation, prompting them to talk about whether they have similar experiences in their own jobs.

Be a friend, gain a friend

A professional networking event can be intimidating. However, if you can strike up pleasant conversation with someone in your intended field, you’ll have someone else by your side to ease the pressure of it all. Ask questions about them, show interest and be willing to share things about yourself, provided they’re not too personal. That would be inappropriate in a networking scenario. Keep things light and generic, rather than focusing on your abandonment issues or the latest terrorist attack.

Be a seeker

The point of business networking is not just to gain contacts, but to gain information. If you are pursuing leads on a job with a specific company, learn everything you can about that company. Learn everything you can about the requirements for the job, too. Arming yourself with knowledge and being willing to apply yourself to the required parameters of the position – rather than expecting the position to conform to you – is always the smartest approach.

Conversation is an anchor

If business networking scenarios are a sea of nervousness to you, remember that conversation is an anchor. Stepping outside your own worries to connect with another human being can help you find your bearings, not to mention forge contacts that can aid your on your career path.

If you aren’t sure which direction to swim first, find someone who looks comfortable, who looks like they know what they’re doing. Introduce yourself, tell them that you’ve never been to an event like this, and ask for pointers. More than likely, the person will be flattered and tell you much of what you need to know. Spend five to 10 minutes per person, thank them for the conversation, exchange business cards and move on. It’s expected.

Encourage later contact

With business cards or contact data exchanged, all that’s left is to suggest a future meeting. Even if you aren’t entirely specific as to when, it’s OK. Just let them know you’re interested and you’re more likely to remain fresh in their mind. If you know of a future business networking event, ask whether they’ll be in attendance, and suggest you get together for a drink or lunch.

Sources

The Accidental Salesman

Forbes

No Pressure Networking

You can learn more about this topic by visiting the source of this content, Personal Money Network, today.

There are some divorce costs same-sex couples don't have to deal with. Photo Credit: Stefano Bolognini/Wikimedia Commons/CC-BY-SA

Same-sex marriage has been at the forefront of socio-political debate for decades. There are a good deal of economic benefits that same-sex couples miss out on, but there are some risks they also don’t have to face if they aren’t able to marry.

Advocatus diaboli

For centuries, the Catholic Church had people on staff to argue against a person receiving sainthood, a position called “advocatus diaboli,” or the “Devil’s advocate” or “Devil’s lawyer.” A legion of lawyer jokes has ensued.

Currently, one of the most divisive issues in America is same-sex marriage. It has been posited that same-sex marriages would bring economic benefits. Tax revenues would increase, more couples would buy homes and so forth. However, just to play devil’s advocate for a moment, there are some risks of marriage that same-sex couples miss out on by not being able to marry.

For a start, the lawyers

Close to half of all marriages end in divorce, which is a substantial cost in and of itself. A 2001 Bankrate article asserts divorce as a $28 billion per year industry. Each divorce, just as every marriage, is unique and the cost varies depending on certain circumstances, according to Forbes. Some people merely have to file a few forms, which can run only a few hundred dollars at most. However, if there is conflict, that’s when the costs really add up.

A mediated divorce, in which a judge handles a non-court hearing to reach middle ground, can run more than $5,000. A collaborative divorce, in which attorneys for both parties reach a settlement without mediation or going to court, can cost up to $3,000 per soon-to-be ex-spouse. A divorce trial is much worse, as a two-day trial can add $25,000 or more to the total costs. Those are just the legal costs; the costs of dividing assets or support payments are not included. The average child support payment was $230 per month in 2009, according to the Census Bureau.

One for you, 19 for me

A benefit of same-sex marriage for government is, according to SmartMoney, is that more people would incur the “marriage penalty” and pay more in tax. The downside is that more people would incur the marriage penalty and pay more in tax. Tax laws change all the time, but in 2001, according to MSN, the average marriage penalty was $1,380, paid extra in taxes by 42 percent of married couples. This was reduced by the “Bush tax cuts,” according to USA Today, but will return if those tax cuts expire.

Unfortunately for those couples already married in states that allow it or in domestic partnerships, the IRS doesn’t recognize same-sex marriages or domestic unions, according to the Wall Street Journal.

Sources

Forbes

SmartMoney

MSN

Bankrate: http://www.bankrate.com/brm/news/advice/19990903a.asp

USA Today: http://www.usatoday.com/money/perfi/columnist/block/story/2012-02-13/couples-finances-money-marriage/53082038/1

Wall Street Journal: http://online.wsj.com/article/SB10001424052748703561604576150332819819692.html

Census Bureau: http://www.census.gov/newsroom/releases/archives/children/cb09-170.html

You can learn more about this topic by visiting the source of this content, Personal Money Network, today.

Our rusty economy chugs along with growing uncertainty. Image: spDuchamp/Flickr/CC BY

A new poll shows that American consumers are growing increasingly pessimistic about the state of the economy as the presidential election heats up. At the same time, more see their personal financial position as getting better.

Two in 10 say ‘good’

According to Friday’s poll by the AP-GFK, only about 20 percent of Americans see the economy as in “good” shape. That is down 10 percent from February polls. About six in 10 now say the economy is either “poor” or “very poor.”

The drop in confidence seems to extend beyond party lines. Only 31 percent of Democrats polled reviewed the economy as “good.” In February, 48 percent of Democrats were optimistic about the economy.

President ratings up, slightly

However, President Obama, whose election many feel hinges on his handling of the economy, has seen his approval rating grow since January. The poll showed a split, narrowly in Obama’s favor. Fifty-three percent expressed approval, as opposed to 43 percent, who were disgruntled. It February, polls showed a 49 percent approval for the President.

Economic growth

The AP-GFK poll also showed some rising confidence that the economy is improving. About 40 percent see the economy as getting better, as opposed to the 22 percent who see it as getting worse. About a third say it is not changing.

Personal economic standing

Eighteen percent of those surveyed said they see their own financial standing as getting worse in the coming months. About half believe it will stay about like it is now. Another 31 percent or so believe that their situation will improve.

While most signs seemed to point to an improving economy at the start of 2012, in the intervening months growth has slowed. In addition, conflicting and uneven economic reports have shaken the confidence of many.

About 1,000 people were polled in the AP/GFK study, which had an error margin of 3.9 percent.

ABC poll more pessimistic

The president fared a little more poorly in another poll by ABC News-Washington Post. It polled people’s opinions on the Obama’s handling of the “auto industry bailout, greater regulation of financial institutions [and] the administration’s economic stimulus program.” Obama received no marks above 50 percent in any of the three categories.

Gary Langer of NBC news, sees the President’s greatest risk coming from split, independent voters:

“In likely the president’s biggest risk, independents rate the economic stimulus negatively by 50-44 percent.”

Quite aware that the public’s approval or disapproval of the President has much to do with the state of the economy, his Republican opponent, Mitt Romney, continues to tout his background in big business as an engine for job creation. He also continues to discrediting Obama’s handling of the economy.

Meanwhile, ABC News predicts that, unless the economy makes a sharp uptick soon, the President’s campaign commercials — which at this time are issue-oriented — will soon switch tone to pick at Romney’s record.

Sources

The Hill
ABC
Business Week

You can learn more about this topic by visiting the source of this content, Personal Money Network, today.

A survey by the University of Michigan has found that nearly a quarter of Americans might not have any savings. Image from Wikimedia Commons.

A survey through the University of Michigan revealed that 23 percent of responding families had no liquid savings. That survey is among a number that have found a large number of people have little or no savings banked.

Survey says

Supposedly, the recession has ended and more people are better off than they were several years ago when things were bad. However, a number of studies and surveys indicate that things are not so rosy.

The University of Michigan conducts a survey every two years, called the Panel Study of Income Dynamics, according to the New York Times, which is conducted by the university’s Institute for Social Research. The survey conducts interviews with about 9,000 families. The findings of the 2011 survey have been released. Of the families interviewed, 8,121 of them were interviewed in the 2009 edition.

Among other findings, the survey found 23 percent of surveyed families had no liquid assets, such as savings accounts, checking accounts and deposit accounts. That was a bump from 2009, when 19 percent of respondents had liquid assets.

Some improvements

Lower income groups ostensibly found it harder to add to their liquid assets, as most people who had more in liquid assets in the 2011 Panel Study had at least $50,000 in liquid assets. However, a somewhat encouraging sign was that the number of families with at least $50,000 in assets had increased to 15 percent of respondents in 2011 from 12 percent in 2009.

According to the Detroit Free Press, the report did show a very slight improvement in the number of families who believed they would likely miss a mortgage payment in the near future. In the 2011 survey, 1.7 percent of respondents said that they would, compared with 1.9 percent in 2009. Furthermore, 4.6 percent of respondents said they believed they would fall behind on mortgage payments in the next few months, compared to 6.0 percent in 2009.

However, 10 percent of respondents also had at least $30,000 in non-collateralized debts, including credit card debt in 2011, up from 8.5 percent in 2009.

Fewer saving

There are fewer people socking money away. According to the Wall Street Journal, the personal savings rate reported by the Department of Commerce reached 3.8 percent in March. However, that is a significant decline from roughly 7 percent around May of 2009.

Perhaps a more troubling finding was from LIMRA, a financial services trade group, which found that 49 percent of respondents in a survey weren’t contributing to retirement in any fashion, according to CNN. Younger respondents were the most likely to not be contributing, as 56 percent of respondents aged 18 to 34 weren’t putting any money into a Roth IRA or 401(k) account of any sort.

Sources

New York Times

Detroit Free Press

Wall Street Journal

CNN: http://money.cnn.com/2012/05/10/retirement/saving-retire/index.htm?iid=SF_PF_LN

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Upward mobility: the man at the bottom works the broom. A new study says he can climb easier in some states than others. Image: emproises/Flickr/CC BY-ND

According to a new study, the first of its kind ever compiled, it is easier to move up economically in some states than it is in others. As a rule, upward mobility is more achievable in the northern East Coast states.

‘The Economic Mobility Project’

The study, called “The Economic Mobility Project,” looked at upward mobility by states. It was released Friday by the Pew Center on the States. In terms of the report, “upward mobility” refers to those whose earnings are more likely to increase over time, in relation to their peers.

North vs. South

The report showed that residents of Maryland, New Jersey, New York, Connecticut, Massachusetts, Pennsylvania, Michigan and Utah have the best chance of achieving greater wealth in their lifetimes.

But the average resident of Louisiana, Oklahoma, South Carolina, Alabama, Florida, Kentucky, Mississippi, North Carolina and Texas will have a much harder time moving up the economic ladder, according to the report.

Erin Currier, the author of the study, was quoted in the Chicago Tribune:

“When it comes to achieving the American Dream, it matters where you live.”

Birth state not a factor

The good news is that a consumer doesn’t have to be born in one of the top states to reap its benefits. The data indicates that it could still be economically beneficial to move to one of the those states. About a third of those who reside in states other than where they were born have increased their economic mobility, said the study.

First study of its kind

The study was the first to look at economic mobility on a state-by-state basis. It looked at more than 10 years of U.S.Census and Social Security Administration data for about 65,000 individuals. The data examined was from all 50 states and Washington, D.C., covering the years 1978 to 2007. Each state was weighed against the regional and national averages.

Data could shape policy

The report reaches no conclusions about why some states perform better than others in terms of economic advancement. However, Currier said that past studies have shown that whether an individual experienced prosperity or poverty during childhood and their level of education are huge factors in determining financial mobility. These factors affect, and are affected by, public policy.

Currier hopes his report will give policy makers more information to work with. He said:

“Understanding that mobility rates differ by state is the first step towards helping policy makers pinpoint what enhances their residents’ mobility.”

Sources

Atlanta Journal-Constitution
ABC
Chicago Tribune

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Saving for retirement is something many people are simply not doing. Image: SeniorLiving.org

The numbers are pretty self-evident: younger workers simply cannot rely on anything but their own savings for retirement. Knowing that, the fact that only 51 percent of Americans are contributing to retirement accounts is concerning many financial advisers.

The state of retirement savings

Fidelity Investments, which handles nearly 2 million 401(k) accounts, reported that only about 51 percent of American adults are contributing to retirement savings accounts. Workers older than 55 have an average of around $130,000 to $230,000 in their retirement savings. For workers younger than 44, average retirement savings are lower, at just less than $75,000. Workers between the ages of 18 and 34 are not saving in huge numbers, with only 44 percent of workers in this group reporting retirement savings.

The problem with 401(k)

401(k) accounts are tax-advantaged retirement savings accounts that are based on the stock market. The stock investments in 401(k) accounts are investments that are subject to the stock market. There are options for 401(k) accounts that have much less or much more risk than others, but even the most conservative accounts still are subject to some forces of the stock market. 401(k) accounts are structured in such a way that there is a tax penalty for withdrawing before retirement, which encourages people to keep money in the stock market. This means that many individuals who are close to retirement lost significant portions of their retirement income when the stock market crashed.

Planning a working retirement

Many of the employees surveyed indicated that while they may be saving something for retirement, they also intend on a working retirement; they will be continuing to pull a paycheck from some employer for a significant portion of their “retirement.” Financial advisers estimate that most people will live between 20 and 30 years after they initially retire. For most people, this means there is a need for a retirement account of, minimum, half a million dollars.

Making use of the market

For younger workers, buying into retirement accounts now will likely be a very good idea. With compound interest, stock splits and other market growth, retirement accounts will build more value for a smaller investment now than they would in a very strong market. For older workers closer to retirement, ensuring that your retirement accounts are following a minimally risky plan will be a very good idea. As always, meeting with a competent and trustworthy investment adviser will always be a good move.

Sources

Forbes
Chicago Tribune
CNN

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The CFPB is looking at mortgage fees associated with closing costs in home sales. Photo Credit: MichaelW1996/Flickr.com/CC-BY

The latest item the Consumer Financial Protection Bureau is considering action on is mortgage fees, specifically mortgage origination fees. The CFPB hasn’t committed to limiting the fees, but it is investigating whether to do so.

Loan origination an item of concern

The Consumer Financial Protection Bureau, according to Businessweek, has announced that the next aspects of consumer finance the agency is interested in examining are origination fees and discount points from mortgage lenders.

Origination fees are the finance charges a mortgage lender charges the borrower for providing the funds; discount “points” are a percentage of the interest a borrower pays up front. One point is 1 percent of the amount of money paid to the lender in interest.

CFPB head Richard Cordray said in a statement that not all lenders use the same terminology and that offers can be misleading. The goal of any action taken would be to either reduce the fees or make mortgage offers more simple to understand.

A sometimes mandatory option

Part of the legal mandate creating the CFPB, according to the Los Angeles Times, included a clause dictating that the agency look at fees associated with mortgages, including origination and discount fees.

Discount fees aren’t always mandatory up front; often a lender reduces the interest rate for a certain number of points paid before closing. Some lenders require a certain amount of discount points, in effect creating another mortgage fee.

The CFPB is making suggestions about what might be done. For instance, according to Businessweek, the CFPB might consider banning origination points altogether so banks don’t push consumers into loans that are larger than they want or need. However, according to Daily Finance, a flat fee might still be allowed for loan origination.

The CFPB may also mandate banks reduce the interest rate if any discount points are paid or create a rule mandating mortgage lenders offer mortgages without discount points.

Fees can add up

The fees involving in closing costs, or the costs involved when a mortgage “closes” and a buyer purchases a home, can be considerable.

In 2011, according to Bankrate.com, the national average origination fee for a mortgage was $1,614, a 10.3 percent increase over the average of 2010. The national average total closing cost for a mortgage of $200,000 was $4,070, meaning origination fees are roughly 40 percent of closing costs. Third-party fees, such as the cost of the appraisal and title fees, were an average of $2,456.

Sources

Businessweek

Bankrate

Los Angeles Times

Daily Finance: http://www.dailyfinance.com/2012/05/10/consumer-watchdog-weighs-limits-to-mortgage-fees/

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Yo-yo financing can leave consumers vulnerable to predatory auto dealers. Image: Strupey/Flickr/CC BY-ND

“Spot delivery” or “yo-yo financing” is when an auto dealer allows a buyer with poor credit to take possession of a vehicle before finalizing the finances. While it may be enormously gratifying for the  consumer to drive away in a new car immediately, it also allows disreputable dealers to stick him or her with higher interest and/or down payment when the financing falls through.

Consumer groups frown on practice

Many consumer groups have lobbied to enact legislation preventing auto dealers from letting cars go before the financing is in place. Negativeequityauto.com says, “Yo-yo financing is one of the worst problems that plagues car buyers today.”

However, some dealers argue that it is good for business, that customers are eager to take their coveted machines home. The practice is particularly alluring to consumers on weekends and after hours, when banks and finance companies are closed and financing can’t be approved.

Pre-approved financing recommended

Carroll Lachnit, the Consumer Advice Editor at Edmunds.com said:

“This phenomenon highlights the benefit of having having pre-approved financing in place before you go car shopping, especially if you’re a sub-prime car buyer. You do not want to be faced with an uncomfortable decision of paying more than you originally agreed to pay, or deal with the embarrassment of forfeiting a vehicle that you might have already showed off to family and friends.”

Various states

Many, but not all, states have laws to give the consumer a way out if financing falls through. But the legislation varies greatly from state-to-state. Normally, there is a required provision in auto sales contracts that gives the consumers a certain time period to return a vehicle if a loan does not stick. Illinois also requires dealers to return any down payment or trade-in if alternate financing can not be found at the contracted rate. But in California, a consumer may be forced to pay the contracted balance even if a loan is not approved.

Get it in writing

When buying a car, protect yourself by always getting the details in writing, says Lachnit:

“Above all else, car buyers should always get every element of their deal in writing. Consumers should ask to see a copy of their rates confirmed by the finance company. They should also be wary of signing any ‘conditional’ boxes in the contract that might allow the dealer to rewrite the contract under different terms.”

Be aware

The bottom line for consumers, though, is to be aware. Don’t take possession of a car unless the loan is approved, even if the dealer encourages it — maybe especially if the dealer encourages it.

Sources

Edmunds
The Truth About Cars
Daily Finance

You can learn more about this topic by visiting the source of this content, Personal Money Network, today.